LOS ANGELES (Legal Newsline) - Two of the main shareholder class action law firms are competing to lead litigation against Beyond Meat over allegations it deceived investors with claims of partnerships with large-scale chains like McDonald's.
Robbins Geller and Bernstein Litowitz both filed motions to be appointed lead counsel on July 10 in Los Angeles federal court, about two months after Bernstein filed its lawsuit on behalf of Retail Wholesale Department Store Union Local 338 Retirement Fund.
The suit says Beyond Meat, which makes plant-based meat substitutes, failed to deliver on claims it could manufacture enough to supply restaurants like Starbucks, KFC, Pizza Hut and Taco Bell.
While blaming delays on COVD-19, executives sold their personal shares, the suit says. Former Chief Financial Officer Mark Nelson sold 440,00 shares for more than $58 million in proceeds, it adds.
On Oct. 22, 2021, the company reduced its third quarter net revenues outlook by up to $34 million, or 25%, the suit says. Later that year, Taco Bell cancelled a planned product test due to quality concerns, it says.
The proposed class period would apply to purchasers of stock between May 5, 2020 to Oct. 13, 2022. The lawsuit says as a result of the defendants' actions, Beyond Meat's stock price went from $108.62 per share to $13.35 by October 2022.
Bernstein Litowitz says its client is the most adequate lead plaintiff because it lost around $2.7 million. It held more than 43,000 shares of Beyond Meat stock.
Not to be outdone, Robbins Geller snagged the Saskatchewan Healthcare Employees' Pension Plan as a client. The motion says SHEPP had 58,564 shares and lost about $4.2 million in its investment.